The fixed exchange rates of the Bretton Woods system were maintained
A) by central bank interventions in the foreign-exchange market.
B) by the requirement that short-term interest rates be equalized in all participating countries.
C) by the requirement that long-term interest rates be equalized in all participating countries.
D) through the automatic workings of the foreign-exchange market.
A
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Two nations have the following production capacity given their endowment of resources. Country A can produce 50 units of beer or 80 units of pizzas. Country B can produce 100 units of beer or 90 units of pizzas. Which of the following statements is most appropriate?
A. Country A has a comparative advantage in beer and Country B has an absolute advantage in pizzas. B. Country A has a comparative advantage in pizza and Country B has a comparative advantage in beer. C. Country A should specialize in pizza and Country B in beer making. D. Both answers b and c are correct.
In a perfectly competitive market, a firm's short-run supply curve is
A) its total cost curve. B) its marginal cost curve equal to or above the point of intersection with its average variable cost curve. C) its average variable cost curve below the point of intersection with its total cost curve. D) its total cost curve between the shutdown point and the break-even point.